[ET Net News Agency, 10 July 2020] Jefferies Research lowered its target price for Li
Ning Company (02331) to HK$31.5 from HK$32.5 and maintained its "buy" rating.
The research house expects Li Ning's 1H sales to grow 1.9%, thanks to e-commerce (up
21%). Although off-line retail may face pressure (sales down 11%), Jefferies expects quite
fattish wholesale revenue.
On the margin, Jefferies forecast gross margin to face pressure amid deteriorated retail
discounts. Yet, it believes Li Ning's 2Q markdown is better versus that in 1Q. Jefferies
also forecast strong expenses savings, which leads to Li Ning's 1H net margin at 9%, on
track to meet full-year guidance of 10-10.5%.
Jefferies cut its 2020/2021 earnings by 3%/11%, respectively, mainly to model a more
promotional than the expected retail environment. Having said that, it remains more
bullish than consensus on Li Ning's long-term outlook. (KL)
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02331 LI NING
Nominal 
19.880 +1.380 (+7.459%) Others
10/07/2020 16:24
{I-bank focus}Jefferies trims Li Ning (02331) to HK$31.5
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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